Technologies / Data Privacy and Security

Given public concern over consumer data privacy, data breaches and online marketing/advertising, Congress has proposed a new comprehensive data privacy regime that includes a private right of action for data privacy and security violations.

Supports a single federal data privacy law consistent with the following principles:

• Transparency in Personal Information Collection: REALTORS® respect consumer data privacy expectations and are committed to developing, implementing, and communicating data privacy and security policies to clients.
• Use, Collection, and Retention of Personally Identifiable Information: REALTORS® collect and use data solely to provide consumer services. They maintain appropriate policies for the reasonable retention and proper destruction of any personally identifiable information.
• Data Security: REALTORS® uphold reasonable security standards and procedures regarding access to client information.
• Disclosure of Personally Identifiable Information: REALTORS® do not reveal personally identifiable data to third parties unless it helps complete a consumer-initiated transaction, the consumer requests it, the disclosure is required or allowed by law, or the consumer has been informed about the possibility of disclosure and provided with an opportunity to opt out.
• Maintaining Consumer Privacy in Business Relationships: If a REALTOR® provides personally identifiable information on behalf of a consumer, the third party should adhere to privacy principles similar to those of REALTORS®.

Opponents of legislation/regulation are generally concerned about limiting business practices which could curtail business models or create excessive costs for business. Others believe that the proposed legislation's private right of action could fuel meritless lawsuits as currently drafted thus creating an unnecessary cost burden on main street businesses.

Congress has been considering legislative proposals that:

1. Set federal data privacy standards for most entities handling sensitive consumer information;
2. Include a private right of action enforcement mechanism; and
3. Establish a "floor" for federal preemption of certain state and common laws.

NAR will continue to educate Congress about real estate data practices and the need for appropriate national standards.

Congressional authorizing committees have not voted proposed legislation out of committee at this time.